Both the S&P 500 and the Dow Jones Industrial Average closed at record highs today, despite markets still awaiting key inflation data (PCE) to be released later tonight.
More importantly, investors are “holding their breath” for the Fed’s next move regarding potential interest rate adjustments in September.
In the technology sector, Nvidia saw a slight pullback as its earnings report fell short of expectations. However, the AI and software industries continue to be the main driving force behind stock market growth and the ongoing rally.
In addition, seven stocks – Rubrik, MercadoLibre, Micron, Cameco, Vertiv, Cadence Design, and GE Vernova – have just flashed strong buy signals, indicating that the uptrend is supported by solid technical momentum.
Yesterday evening, revised GDP data came out stronger than expected, reflecting a robust recovery in the U.S. economy. This reinforces confidence that the Fed may ease monetary policy in the near future – supporting the case for U.S. equities to rise further in the medium and long term.
Capital inflows are gradually returning to equities, particularly into leading sectors. Meanwhile, expectations of Fed rate cuts and looser monetary policy are giving investors a more optimistic outlook for the U.S. economy heading into late 2025.
Technical Analysis:
The S&P 500 has been consistently setting new all-time highs in recent sessions.
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In the short term, the index may correct down to the Fibonacci retracement zone of 0.5 – 0.618 at 6,483 – 6,488.
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Afterward, it could rebound back to retest the previous high at 6,508, or even extend toward the Fibonacci extension level 1 at 6,523.
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